Macro Economic Analysis of Japan

Only available on StudyMode
  • Download(s) : 111
  • Published : December 9, 2012
Open Document
Text Preview
Draft Case Study

MAROECONOMIC COUNTRY REPORT - JAPAN

ECONOMICS PROJECT

1.

GROUP MEMBERS: 14C G Yogesh Kumar XX ..................................................................................................................................................ERROR! BOOKMARK NOT DEFINED. 24C Madhav Purohit XX............................................................................................................................................ Error! Bookmark not defined. 31C Priya Singh 33C Radhika Nijhawan 40C Sakshi Garg 45C Sweta Jain ABOUT XX ......................................................................................................... ERROR! BOOKMARK NOT DEFINED.

Contents

Copyright © 2010 Deloitte. All rights reserved

MBA (IB) 2011-2013 Indian Institute of Foreign Trade Delhi

Macroeconomic Country Report - Japan

INDEX
S. NO. CONTENTS PAGE NO.

1.

2. 3.

4. 5.
S. NO.

Japan - Socio Economic and Political Outlook Political Economic Social Macroeconomic Performance in recent past Macroeconomic Issues 1. Rising Yen 2. High Debt-GDP Ratio 3. Recent Earthquake and Tsunami Remedies to overcome Macroeconomic difficulties References List of Tables and Figures

3 3 4 4 5-7 8 9 10 11 12-14 15
PAGE NO.

1. 2. 3. 4. 5. 6.

Chart 1- Japan's GDP growth rate declined in 2011 after the earthquake Table 1- Japan's CPI over the years 2007-12 with 2005 and 1998 as the base year respectively Chart 2- Japan's CPI over the years 2007-12 Table 2- Japan's BoP status(in billion yen) including the four constituents of the account i.e. Current Account, Capital Account, Reserves and Errors and Omissions Chart 3- Japan's BoP status(in billion yen) including the four constituents of the account Chart 4&5- Japan's Index for Industrial Production and Production Forecast for Transport, Machinery and Electronic Devices (Source - Monthly Report of Prospects for Japan's Economy) Chart 6 - Value of yen in last 5 years Chart 7 - Japan's net debt to GDP ratio since 1998 Chart 8 - Areas most affected by the earthquake and nuclear leak

5 5 6 6 6 7

7. 8. 9.

8 9 10

P a g e |2

Macroeconomic Country Report - Japan

Japan - Socio Economic and Political Outlook

Ban Three decades ago, Japan was spoken of in the same awestruck tones as they now do of China. Driven by industrial production, it was seen as an unstoppable growth machine, with all the right responses to the ever onwards and upwards march of economic progress. It was only a matter of time, it was widely said, before Japan overtook the mighty US as the world's largest economy.

Ten years later, the Japanese economic miracle ground to an ignominious halt, and the country has struggled to show significant growth ever since. With economic malaise and political instability Japan struggles to get back on the growth trajectory.

In March 2011, Japan was hit by a triple disaster , the Great east Japan Earthquake measuring 9.0 on the richter scale , followed by a tsunami and finally coming to an end with a nuclear disaster. The economic reconstruction in the post disasater phase has lead to an increase in the public spending and the economy expanded at an annualized rate of 6 percent in the JulySeptember period driven by exports.But still has major economic and policy related problems which to be addressed. Stuck in the quagmire of deflation , an ageing population and high GDP to debt ratio, Japan has to make major changes in its economic and political scenario.

POLITICAL:

Japan has had 33 Prime Ministers since 1945. Ratings agency Moody’s recently reduced Japan’s credit rating to AA3 and the reason being the inability of politicians to make decisions. The Japanese have become used to political paralysis during the country's slow decline since the bursting of the bubble economy in 1989. Japan’s last Prime Minister Naoto Kan resigned due to record-low approval ratings and continuing public backlash regarding his...
tracking img